The Wii cannot produce the high resolution output to begin with.... the 2nd issue is HD-DVD / Bluray need some beefy processor power to output/decode these dvds which the Wii simply cannot do as it does not have a powerful enough processor.

The xbox360's addon drive works as it can use the xbox360's power to do all the decoding as with the ps3.

Isn't there liscencing issues if they offer DVD playback support? Like, won't Nintendo have to pay royalties out for the codecs etc. or is that not the case? May be why it is only being done in Japan, to please their loyal fanbase.

Isn't there liscencing issues if they offer DVD playback support? Like, won't Nintendo have to pay royalties out for the codecs etc. or is that not the case? May be why it is only being done in Japan, to please their loyal fanbase.

Right. It is likely that Nintendo will enable DVD playback on new units only.

For the price I am not upset that it can't play hd-dvd's or blu ray discs. It's advertised as a gaming system and that's what it is. It's the cheapest system on the market because it doesn't mess around with encompassing enetertainment as a whole. Sony and Mircosoft try to be alot of things to everyone, Nintendo is banking on being a game company. We will see if this strategy keep them in the console wars for many years to come.